October 11, 2019
WeWork to close its New York elementary school next year
WeWork says it will close its elementary school in New York next year, as the office-sharing company grapples with a cash crunch following its botched attempt to sell its stock on Wall Street.
The company said Friday it will close the "WeGrow" school in Manhattan at the end of the 2019-2020 school year.
It's WeWork's first publicly announced cost-cutting step since halting its planned initial public offering last month. That came amid deep investor skepticism about the company's losses, murky prospects for eventual profitability, and corporate governance problems.
The debacle posed an urgent funding problem for WeWork, which had hoped to raise $3 billion in the IPO. That would have given it access to $6 billion in financing raised by a group of banks to fund its aggressive growth strategy.
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